
India is at the cusp of an industrial transformation fueled by Industry 4.0 technologies such as IoT, AI, robotics, and advanced analytics. The Confederation of Indian Industry (CII), in collaboration with KPMG, has presented a comprehensive report titled Industry 4.0 Adoption and Strategic Roadmap for Indian Manufacturing. This report provides actionable insights to help Indian manufacturers embrace digital transformation, improve operational efficiency, and secure a stronger position in the global value chain.
Current State of Digital Maturity
The digital maturity of Indian manufacturers is uneven. Large enterprises score an average of 3.4 on a 5-point scale, whereas medium-sized companies stand at 2.9, and MSMEs lag at 2.4. The top 25% of companies reach a maturity score of 4.3, while the bottom 25% fall to 1.9. This disparity reveals a pressing need for targeted interventions to bridge the gap.
Key Drivers and Barriers
Digitally mature firms exhibit strong leadership commitment, robust digital infrastructure, continuous workforce upskilling, and alignment of sustainability goals with digital strategies. However, barriers such as limited awareness, high costs, legacy system incompatibility, and workforce resistance hinder Industry 4.0 adoption. Notably, 85% of business leaders prioritize digitalization, but only 30% have successfully scaled their initiatives.
Sector-wise Adoption
Industry 4.0 adoption varies across sectors:
- Leaders: Automotive, electronics, and pharmaceuticals sectors leverage technologies for precision, automation, and regulatory compliance.
- Moderate Adopters: Oil & gas and food & beverage sectors use digital tools for operational improvements and compliance.
- Laggards: Textiles, metals & mining, and heavy equipment manufacturing face financial and technical challenges that impede digital transformation.
Government Initiatives and Recommendations
India’s initiatives, including SAMARTH Udyog Bharat 4.0, Make in India 2.0, and Digital India, are pivotal in accelerating Industry 4.0 adoption. These programs promote advanced manufacturing practices, provide financial incentives, and enhance digital infrastructure. Policymakers are urged to conduct nationwide awareness campaigns, expand training programs, and establish public-private partnerships to create an enabling environment for digital transformation.
MSMEs: Key to India’s Manufacturing Growth
Micro, Small, and Medium Enterprises (MSMEs) represent a vital part of India’s manufacturing sector but struggle with low digital maturity. The report emphasizes the need for MSMEs to:
- Access government support schemes like SAMARTH Udyog Bharat 4.0.
- Leverage affordable digital tools and IoT-enabled systems.
- Invest in workforce training through platforms like NASSCOM and Coursera.
- Participate in Global Value Chains (GVCs) to enhance global competitiveness and adopt advanced technologies.
Sustainability and Industry 4.0
Digitally mature companies integrate sustainability into their digital strategies, optimizing resource use, reducing waste, and aligning with global environmental standards. Success stories such of Indian and Global companies demonstrate the potential of Industry 4.0 in achieving energy efficiency, waste reduction, and sustainable growth.
Roadmap for the Future
To enable successful digital transformation, the report recommends:
- Developing comprehensive digital strategies with phased implementation roadmaps
- Fostering a culture of innovation and continuous learning
- Establishing structured public-private partnerships and innovation hubs
- Expanding financial support, tax incentives, and export-focused incentives for MSMEs
The adoption of Industry 4.0 technologies is essential for India to become a global manufacturing powerhouse. By addressing existing challenges and leveraging available opportunities, Indian manufacturers can build a digitally enabled, resilient, and globally competitive ecosystem. The CII-KPMG report serves as a valuable guide for policymakers, industry leaders, and stakeholders to navigate the complexities of digital transformation.
Read the full report at – Industry 4.0 adoption and strategic roadmap for Indian manufacturing
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